The Nasdaq 100 Index capped its worst week since March as Apple slumped on its warning that the Trump administration's musing over levying virtually everything imported from China would hit a broad range of its products.
"Our concern with these tariffs is that the USA will be hardest hit, and that will result in lower US growth and competitiveness and higher prices for USA consumers", the company said. Trump delivered his news to a scrum of reporters on Air Force One, telling them that the new tariffs could come "very soon depending on what happens", according toBloomberg. Then last month, the escalating trade war moved up a gear when the United States brought in a 25% tax on a second wave of goods worth $16bn.
US President Donald Trump's administration has threatened 25 percent tariffs on the Chinese imports, including seafood, furniture, lighting products, tires, chemicals and plastics.
The US dollar rallied versus major peers and the offshore Chinese yuan fell the most in a week.
Apple CEO Tim Cook remains "optimistic" the tariff issue will be sorted out.
Lighthizer is due to meet Monday in Brussels with EU Trade Commissioner Cecilia Malmstrom to resolve the dispute ignited when Trump imposed steep duties on all steel and aluminum imports. "The traditional method of calculating the United States trade balance attributes the entire value of our products to the country where final assembly is located, in most cases China".
There was no immediate reaction to Trump's comments from the Chinese government, and the threat of more tariffs had not been reported by mainstream state-owned Chinese media as of Saturday evening.
While Trump was waving his proverbial stick, Top White House economic advisor Larry Kudlow made a paltry attempt to offer something of a carrot on Friday, saying that the United States is up for talks and that there is "constant communication".
Chinese exports to the United States rose to US$44.4 billion in August, a 13.2 per cent increase from the same period past year, according to customs data.
The letter did not mention the iPhone, which accounted for about two-thirds of Apple's $229 billion in revenue in its most recent fiscal year.